Despite what some in the US Senate would have us believe (Sen. Richard Shelby, R-Ala), the U.S. health care system it not the best in the world, at least by a couple of simple measures: cost per capita and life expectancy. When compared with the other major industrialized countries we have the worst life expectancy:
Yet we have the highest cost, whether measured as a % of GDP:
or measured in cost per person:
In fact our cost per person is more than twice the average cost per person of all the other countries listed (population weighted average cost per person is $2,728).[This data is from a convenient summary published by NPR]
Certainly life expectancy depends on many factors in addition to medical care, such as diet, exercise, bad habits, etc. But clearly the system isn’t working. For what we are paying for health care we ought to be getting not only the best acute care but great preventive care as well.
The care we are getting is too expensive (almost 1/5 of GDP). The cost of health care has been growing at over twice the rate of the overall growth of GDP, a rate that is not sustainable. In fact if it were to continue by 2060 all of the US GDP would be spent on health care leaving nothing for food, housing, cars, or smart phones. Obviously our economy would have collapsed long before. I think that there is every indication that heath care expenses have already grown beyond a sustainable level and is at the core of our current economic malaise, more on that in future posts.
